Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports
if they are used for other purposes.
Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).
Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and
attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.
F I S C A L I M P A C T R E P O R T
SPONSOR Jennings
ORIGINAL DATE
LAST UPDATED
01/25/07
01/31/07 HB
SHORT TITLE Electronic Health Record Implementation
SB 122/a SPAC
ANALYST Hanika Ortiz
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
$1,500.0
Non-recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Department of Health DOH)
Human Services Department (HSD)
SUMMARY
Synopsis of SPAC Amendment
The Senate Public Affairs Committee Amendment directs the appropriation of $1.5 million in the
bill toward DOH instead of to HSD.
Synopsis of Original Bill
Senate Bill 122 appropriates $1.5 million to HSD to assist in the adoption of electronic health
records by funding pilot projects in Taos, Chaves, Hidalgo, Luna and Grant counties. $500
thousand of appropriation requested will be to contract with qualified non-profit organizations to
assist health care providers in the selection and implementation of electronic health records. $1
million will be used to facilitate the installation of electronic health record systems in provider
offices and clinics.
FISCAL IMPLICATIONS
The appropriation of $1.5 million contained in SB 122 is a non-recurring expense to the general
fund. Any unexpended or unencumbered balance remaining at the end of FY08 shall revert to the
general fund.
pg_0002
Senate Bill 122/a SPAC – Page
2
DOH reports that any ongoing costs to maintain systems will be the responsibility of the provider
or clinic.
SIGNIFICANT ISSUES
DOH reports appropriation may be insufficient to support many providers. Medical records
systems typically cost $50,000 for a small provider. CMS already funds (through a contract) a
non-profit charged with assisting providers in adopting electronic health records systems.
TECHNICAL ISSUES
The title of the bill indicates appropriation is directed to DOH and the body of the bill
appropriates the funds to HSD. The correct agency should be DOH.
AHO/csd